Insurance(s) to Consider


#1

This is really exciting and a lot of new ground is being broken with Notary Coin. With that said, what does everyone think about proper insurance(s) that one should carry?

Beyond E&O and a general umbrella policy, any others that might be useful (better)?


#4

Hey @jflowers I’ve read a lot of your posts in the past couple of days and really appreciate your perspective on the many avenues in the crypto space. I’m curious what your thoughts are here…what insurance do you feel one should hold in this scenario?

Thanks!
Kaitlin


#5

Hey there @noltekm . The more one looks into this, the deeper the rabbit hole gets.

Which makes sense: we are at a complex intersection (legal/business/tech). The more I looked into potential products - I simply couldn’t find one that would offer the type(s) of protection that I was hoping for.

I consult on the side, so initially I was thinking perhaps a business umbrella policy might be possible. When you start to shopping/unpacking these policies though, the “software” as well as the self governance aspects would likely run afoul of most conventional products.

Then I thought about the ‘what if(s)’ that I was most concerned about. In each case, I was hard pressed to see why an insurer would feel compelled to pay out. There just seemed to be too many reasons or avenues that they could use to get out of a claim.

To be clear, we are not utilizing our commissions in the traditional sense. Rather, they are being used as a form of governmental attestation as to our identity…

As for best routes, that’s really hard. The idea of self insurance, which is less than ideal might be the only tool available. This is less than ideal for a number of reasons: one must be disciplined and capital is basically frozen/inactive. This also is non-ideal as it unfairly impacts new validators.

I think that I would like to see a pledge by all validators to shoulder a potential issue using the lens of equity (not one of equality).


#6

@noltekm Great question! :+1:


#7

This is rather interesting (and probably a long ways off). But does indicate some movement in the space regarding this type of need:

https://www.ccn.com/ethereum-foundation-developer-proposes-smart-contract-insurance-fund/

I could see validators either paying into this and/or requiring dApps to have this to transact on the network… something. Again, this is probably way off into the future. But does seem to be one means of assuaging some risks.

In the meantime, it is something that ought to be cause for thought.


#8

Good read, thanks for sharing!